Category Archives: Service Tax

The Finance Minister, in his budget speech, has proposed many incentives to encourage entrepreneurship in India. Some of the tax measures which will be beneficial for new start-ups are as follows- 1. Optional lower tax rate for newly setup manufacturing companies: In... read more

Central Sales Tax (CST) is a tax on sales of goods levied by the Central Government of India. CST is applicable only in the case of inter-state sales and not on sales made within the state or import/export of sales. Inter-state sale is when a sale or purchase... read more

Certain forms have been prescribed under CST which are used for different purposes. Form C is used for making interstate purchase at lower rate, Form F is used for transferring goods from one branch to another in different state and Forms E1 and E2 are used for... read more

1. Relief to small tax payers (a) Rebate under Sec 87A: With the objective of providing relief to resident individuals in the lower income slab i.e. total income not exceeding Rs. 5,00,000, section 87A is proposed to be amended so as to increase the maximum amount of... read more

Features and impact of current system with an ideal GST regime Current regime of indirect taxes An ideal GST structure Features Goods and services taxed separately* No differentiation between a good and a service; both subject to one tax VAT applies at... read more

Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST paid on inputs may be used only for paying SGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilised, except in specified circumstances... read more

GST is applicable on the supply of goods or services. It will apply to all taxable supplies of goods or services (as against manufacture, sale or provision of Service) made for a consideration except – Exempted goods or services – there will be a common list for CGST... read more

According to the GST bill, there will be a dual GST model and the taxes will be levied on each kind of transaction. SGST – State GST, levied and collected by the State Govt. CGST – Central GST , levied and collected by the Central Govt. IGST – Integrated GST,... read more

The introduction of GST will replace the various taxes presently being levied by Central & State Government(s). The following taxes levied by Central government will be subsumed: i) Central Excise Duty ii) Additional Excise Duty (Goods of Special Importance) iii... read more

We are starting an easy-to-understand series on topics related to GST, which is due to be applicable in India from 1.4.2016. What is GST ? “Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale, and consumption of goods and services at a... read more